Hawaii GET and TAT tax on timeshare rentals

Marriott send us an email for the first time yesterday informing us of the GET and TAT excise tax in Hawaii. The GET is 6% and the TAT is 4%.

"Dear Owner,

The following notice is being provided to you at the request of the Hawaii Department of Taxation.

NOTICE REGARDING HAWAII TAXES The State of Hawaii imposes a General Excise Tax ("GET") and Transient Accommodations Tax ("TAT") on the proceeds of the rental of timeshare interests. If you elect to rent your timeshare interest whether on your own, through Marriott or through another operator, please note that unless arrangements are made for collection and payment of these taxes, you may be liable for the payment of both the GET and TAT due on the rental proceeds. Failure to timely remit these taxes to the Department of Taxation of the State of Hawaii may result in the assessment of the taxes, interest and penalties against you. Any such liability may be in addition to any federal or Hawaii income tax requirements.

Because each individual tax situation varies, you should consult with your accountant or other tax advisor regarding your filing requirements and with respect to the federal, state and local tax consequences of the rental of your timeshare interests.

The foregoing does not constitute and should not be construed as a legal or tax opinion or as legal or tax advice. The information in this letter is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code.

Marriott Vacation Club"

Hawaii state surely piles on their taxes to tourists. Would beinteresting to add ALL taxes one must pay to go there. Even rental cars have a "road use tax" !! Now we find they want to RETAX owners of units that rent their weeks even though we owners have already paid taxes to have the week!!!!! Surely this is another slap to tourism. Marriotts letter to us this week must be in response to Hawaii's tax grab again. Most people that own units only rent occasionally if they can't go at the last minute or there is illness in the family etc. I doubt there are many owners that rent as a business. Perhaps hawaii should police those not owners who rent occasionally for one or two weeks. Will they never stop til tourists leave for less expensive spots?

I agree and you bring up all excellent points. It seems they DO NOT want to encourage tourism...

So what happens? Does the State of Hawaii send out tax notices to owners who have rented units out during the year. How do they even know if it was rented or just used by a guest? Does Marriott inform them? This seems weird.

We also received the email to our surprise. It was the first time we rented our week and trying determine what to do next. I agree, how does Marriott know that we are "giving" our family the week vs renting it out.

Quote:

Marriott send us an email for the first time yesterday informing us of the GET and TAT excise tax in Hawaii. The GET is 6% and the TAT is 4%.

"Dear Owner,

The following notice is being provided to you at the request of the Hawaii Department of Taxation.

NOTICE REGARDING HAWAII TAXES The State of Hawaii imposes a General Excise Tax ("GET") and Transient Accommodations Tax ("TAT") on the proceeds of the rental of timeshare interests. If you elect to rent your timeshare interest whether on your own, through Marriott or through another operator, please note that unless arrangements are made for collection and payment of these taxes, you may be liable for the payment of both the GET and TAT due on the rental proceeds. Failure to timely remit these taxes to the Department of Taxation of the State of Hawaii may result in the assessment of the taxes, interest and penalties against you. Any such liability may be in addition to any federal or Hawaii income tax requirements. Please tell me if help filling in tax return here treated yourbooksontime? Because each individual tax situation varies, you should consult with your accountant or other tax advisor regarding your filing requirements and with respect to the federal, state and local tax consequences of the rental of your timeshare interests.

The foregoing does not constitute and should not be construed as a legal or tax opinion or as legal or tax advice. The information in this letter is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code.

Marriott Vacation Club"

resolved the issue?

Hello All,

I have a 2 bedroom timeshare unit at the Hyatt Residence Club in Kaanapali, Maui Hawaii.

Per these articles, it states that Maui County Tax Registration would need to be filled in to receive rental income: https://files.hawaii.gov/tax/legal/taxfacts/tf96-2.pdf https://www.ntanet.org/wp-content/uploads/proceedings/2008/009-kwak-taxing-timeshare-occupancy-2008-nta-proceedings.pdf

In the form, I am being asked for the following: a) General Excise Tax ID b) Transient Accommodations Tax ID

I'd appreciate any assistance from anyone who can help me identify what these IDs are.

Thx, Sonny DeLara

I found the Parcel Number (Tax Map Key) from Hyatt's Purchase Club.

Here is a link on what is required of timeshare owners who rent out their Hawaii timeshare in terms of reporting and paying the Hawai GET and TAT taxes. https://files.hawaii.gov/tax/legal/taxfacts/tf98-4.pdf

And here is a brochure with full details on how to do it: https://files.hawaii.gov/tax/legal/brochures/TAT_brochure.pdf